Like any binding agreement, it is best to seek legal advice to ensure that you fully understand your rights and obligations before signing a GSP. If you do not meet your GSP obligations, this can lead to litigation and serious financial consequences. A sales and sale contract is a written contract between a seller and a buyer for the purchase and sale of a particular property. In the agreement, the buyer agrees to purchase the property at a specified price, provided a number of conditions are met. The process begins when the buyer makes an irrevocable offer for a certain period of time. In the absence of counter-offers, the contract becomes a legally binding agreement if the offer is accepted by the seller within the time allotted by the buyer. On that date, the contract cannot be terminated unless the buyer and seller agree. The date of the application, that is, the date on which the buyer must verify the title and complete all other searches. It is usually set for a period of 15 days to one month before the closing date of the transaction. Before that date, it is the buyer`s responsibility to do a series of researches to ensure that there are no problems with the property. These are usually handled by the buyer`s lawyer and include things like searching the registered property with the land registry, verifying that the property complies with zonar rules, and searching for pending municipal work orders. It is customary to add certain conditions to the SPG form in an “A” schedule to the agreement.
A condition simply means that a particular event must occur, otherwise the agreement is not valid. As soon as the condition is met, the party sends a notification document to the other party. A party may also waive a condition if it is unable to meet the condition within the specified time line, but still wishes to continue the transaction. As soon as all the conditions are met or have been abandoned, the agreement is considered “firm”. If the conditional period expires and it is not fulfilled or not, the contract is no longer in effect.